What condition triggers the payment of the Sponsoring Bonus by Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- j) The Sponsoring Bonus is paid by EXIT after the Company Development Fee designated for the same Recruit is received by EXIT.
If funds are received electronically the bonus is typically paid out within seven days.
In the rare event that the Company Development Fee is not received electronically, or the associate has not elected to receive the Sponsoring Bonus electronically, the corresponding Sponsoring Bonus will be paid out within 30 days.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Sponsoring Bonus is paid after Exit receives the Company Development Fee designated for the recruit. Once Exit receives the Company Development Fee, the Sponsoring Bonus is then payable to the Sponsor.
The method of payment affects the payout timeline. If the Company Development Fees are received electronically, the Sponsoring Bonus is typically paid out within seven days. However, if the Company Development Fee is not received electronically, or the associate has not elected to receive the Sponsoring Bonus electronically, the Sponsoring Bonus will be paid out within 30 days.
It is important to note that the Sponsoring Bonus is paid by Exit, the franchisor, and not by Subfranchisors, Franchisees, or Sales Representatives. The Sponsoring Bonus is calculated and paid out in the currency of the country in which the transaction is finalized. Each Sponsoring Bonus is subject to a Sponsoring Bonus Fee of 10% of the Sponsoring Bonus per Transaction Side to a maximum of $75 per Transaction Side.